Correlation Between UJU Electronics and Hugel
Can any of the company-specific risk be diversified away by investing in both UJU Electronics and Hugel at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining UJU Electronics and Hugel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UJU Electronics Co and Hugel Inc, you can compare the effects of market volatilities on UJU Electronics and Hugel and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in UJU Electronics with a short position of Hugel. Check out your portfolio center. Please also check ongoing floating volatility patterns of UJU Electronics and Hugel.
Diversification Opportunities for UJU Electronics and Hugel
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between UJU and Hugel is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding UJU Electronics Co and Hugel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hugel Inc and UJU Electronics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on UJU Electronics Co are associated (or correlated) with Hugel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hugel Inc has no effect on the direction of UJU Electronics i.e., UJU Electronics and Hugel go up and down completely randomly.
Pair Corralation between UJU Electronics and Hugel
Assuming the 90 days trading horizon UJU Electronics Co is expected to under-perform the Hugel. But the stock apears to be less risky and, when comparing its historical volatility, UJU Electronics Co is 1.48 times less risky than Hugel. The stock trades about -0.17 of its potential returns per unit of risk. The Hugel Inc is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 27,300,000 in Hugel Inc on September 1, 2024 and sell it today you would lose (1,300,000) from holding Hugel Inc or give up 4.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
UJU Electronics Co vs. Hugel Inc
Performance |
| Timeline |
| UJU Electronics |
| Hugel Inc |
UJU Electronics and Hugel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UJU Electronics and Hugel
The main advantage of trading using opposite UJU Electronics and Hugel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UJU Electronics position performs unexpectedly, Hugel can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hugel will offset losses from the drop in Hugel's long position.| UJU Electronics vs. Dongsin Engineering Construction | UJU Electronics vs. Doosan Fuel Cell | UJU Electronics vs. Daishin Balance 1 | UJU Electronics vs. Total Soft Bank |
| Hugel vs. Hanmi Semiconductor Co | Hugel vs. EBEST Investment Securities | Hugel vs. Sangsangin Investment Securities | Hugel vs. Daol Investment Securities |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stocks Directory module to find actively traded stocks across global markets.
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